HD Hyundai’s engine business is surging—will revenue reach 10 trillion won by 2030?

[Financial News] HD Hyundai Group’s engine business is growing on the back of demand from both the shipbuilding sector and AI data centers. With large-scale capacity expansions and a stronger maintenance, repair and overhaul (MRO) business, forecasts suggest annual revenue could approach 10 trillion won by 2030.
According to industry sources on the 12th, HD Hyundai Heavy Industries plans to at least double production capacity for its self-developed HiMSEN engine, from about 3 GW last year to 7.2 GW by 2030. The move is aimed at meeting demand not only for marine engines but also for land-based power generation engines. 
The company will invest 833.6 billion won to build a production base for HiMSEN engines for land-based power generation in Onsan-eup, Ulju County, Ulsan. The facility is scheduled for completion in May 2028. By 2030, capacity will be expanded to a total of 7.2 GW: 3.2 GW for marine engines, 1 GW for small-capacity land-based power generation, and 3 GW for large-capacity land-based power generation.
HD Hyundai Heavy Industries’ engine and machinery division posted revenue of about 3.7 trillion won last year. If demand continues in line with the capacity expansion, revenue is expected to rise to 7 trillion won or more.
Engine orders are also growing rapidly. This year, the company secured two contracts to supply power-generation equipment for U.S. data centers, with a combined value of 1.5831 trillion won. Including these contracts, its engine order backlog stood at $8.78 billion (about 11.7 trillion won) as of the end of last September, up 31.4% from the end of last year. Cumulative new orders over the same period totaled $4.14 billion, exceeding the annual target.
HD Construction Equipment Co., Ltd. has also set an official target of 2.5 trillion won in engine business revenue by 2030, nearly doubling the 1.3 trillion won it recorded last year.
Its production hub is a new engine plant in Gunsan, North Jeolla Province, completed last month. Built with an investment of 116.8 billion won, the plant can produce 1,250 power-generation engines in the 1–3 MWe class and 120 tank engines annually. The company plans to begin mass production with a 37-liter-class power-generation engine in the first half of next year, followed by 77-liter-class products in 2028 and 50-liter-class products in 2029.
Orders are also underpinning the business. Export contracts for gas power-generation engines in North America are coming in one after another. Last month, the company signed a contract worth about 390 billion won to supply engine long blocks to U.S. power infrastructure solutions company ERock. This month, it added a 165.5 billion won supply contract with Power Solutions International (PSI). The contracts secured in just over a month are worth about 550 billion won in total.
Other affiliates are also strengthening HD Hyundai’s engine business by expanding product lines, improving production efficiency and building maintenance capabilities.
Last October, HD Hyundai Marine Engine signed a new licensing agreement with WinGD, a company with core technology for two-stroke marine propulsion engines. By adding WinGD technology to its existing Everllence technology, it has established a foundation for meeting customers’ diverse engine needs. The company is also investing 65.3 billion won to optimize its production facilities.
HD Hyundai Marine Solution is targeting the maintenance market after engines are sold. Last month, it acquired Goltens, a global service provider for marine and land-based power-generation engines, for about 331.5 billion won. The plan is to strengthen its engine MRO capabilities by drawing on Goltens’ 28 repair locations worldwide and more than 1,300 skilled employees.
The expansion of HiMSEN engine capacity at HD Hyundai Heavy Industries, the growth of HD Construction Equipment Co., Ltd.’s power-generation engine business, and the stronger manufacturing and maintenance capabilities of HD Hyundai Marine Engine and HD Hyundai Marine Solution are expected to drive growth in the group’s engine business. As the group extends the engine competitiveness it has built in the marine sector into the land-based power market, it is gaining momentum toward its goal of 10 trillion won in revenue by 2030.

[email protected] Kim Yun-ho Reporter